Transfer of Property Act Section 116 — Effect of holding over

CHAPTER V OF LEASES OF IMMOVEABLE PROPERTY — Illustration to clause (f)

General

Summary

If a tenant or sub-tenant stays on in the property after the lease has ended, and the landlord accepts rent from them or otherwise agrees to them staying, then the lease is automatically renewed. This renewal happens on a month-to-month or year-to-year basis, depending on how the property is normally leased. This applies unless there is a specific agreement saying otherwise.

Official Text

If a lessee or under-lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year, or from month to month, according to the purpose for which the property is leased, as specified in section 106. Illustrations

(a) A lets a house to B for five years. B underlets the house to C at a monthly rent of Rs. 100. The five years expire, but C continues in possession of the house and pays the rent to A. C's lease is renewed from month to month.

(b) A lets a farm to B for the life of C. C dies, but B continues in possession with A's assent. B's lease is renewed from year to year.